On Thursday, February 9, 2023, D-BOX Technologies Inc. (TSX: DBO) a world leader in haptic and immersive experiences, reported financial results for the third quarter of fiscal 2023 ended December 31, 2022.
Compared to the same quarter a year earlier, total revenues grew 87% to $10.5 million and system sales revenues increased 143% to $8.4 million.
Gross profit excluding amortization related to cost of goods sold increased to $5.0 million from $3.6 million for the same period last year. Gross margin excluding amortization decreased to 48% from 64%. The decrease was due to a higher proportion (market mix) of sales to theatrical exhibitors and themed entertainment system sales in the quarter. Theatrical exhibitor and themed entertainment system sales were also impacted by higher transportation costs.
This was the company's sixth consecutive quarter of positive adjusted EBITDA*
Accelerating into Sim Racing
While D-BOX is perhaps best known for their haptic movie theatre seats that help immerse the audience in popular cinema blockbusters, the company is quickly gaining traction in the sim racing market. When reporting their third quarter results, the company provided the following update on their sim racing business:
"During the quarter, Kindred Concepts opened its first state-of-the art F1 racing simulation center called F1 Arcade, featuring 60 D-BOX-equipped simulators in London, England, with 30 locations planned over the next five years; and we announced collaborations with leading sim racing equipment designers, manufacturers and marketers, RSEAT and Trak Racer. And last month, we announced our Mercedes-branded multipurpose haptic platform, which will be available for on-line purchase by the end of February." - Sébastien Mailhot, Chief Executive Officer.
The Mercedes and RSEAT modular motion platforms are compatible with most sim racing chassis manufacturers and can also be used in conjunction with chairs, sofas, fitness devices, and more in-home and commercial entertainment. They are also compatible with the D-BOX ecosystem, allowing users to benefit from a haptic experience for the more than 2,500 films and television series available in the content catalogue on D‑BOX PLUS.
Sim racing is an exciting market for D-BOX and one the company see lots of growth potential in.
* Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flows from operations. It consists of profit (loss) excluding amortization, financial expenses net of income, income taxes (recovery), impairment charges, share-based payments, foreign exchange (gain) loss and non-recurring expenses related to restructuring costs.
Source: D-BOX Technologies Inc.